- Hanwha Group announced a tender offer for the shares of Mainboard-listed Dyna-Mac Holdings for $0.60 per share.
- The offer intends to secure management control of the company for Hanwha Aerospace and Hanwha Ocean.
- The tender offer will be conducted through a local SPC (Special Purpose Company) in Singapore.
South Korean conglomerate Hanwha Group has made it known that it plans to acquire all shares it currently does not own in Singapore-based oil and gas fabricator Dyna-Mac via a tender offer worth up to 600bn won ($448m), reports The Korea Economic Daily.
Tender offer for Dyna-Mac
The conglomerate’s defence and shipbuilding units Hanwha Aerospace and Hanwha Ocean already own a combined 25.36% stake in Dyna-Mac. The former owns approximately 3.71% while the latter owns around 21.65% of the total number of issued shares.
They acquired Keppel’s 23.91% stake back in May with Hanwha Ocean taking a large 21.52% chunk while Hanwha Aerospace bought 2.39%.
The two companies now offered to buy the remaining stakes at S$0.60 ($0.46) per share and take control of Dyna-Mac. The offer is a 21.2% premium over Dyna-Mac’s last closing price.
The tender offer should be completed by the end of 2024. The two Hanwha units will conduct the offer through a special-purpose company based in Singapore. The tender offer is dependent on regulatory approval from the Singaporean competition authorities.
Dyna-Mac is a well-known maker of FPSO, FSO, and FSRU topside modules. It has two fabrication yards in Singapore and joint ventures and collaborations with yards in Malaysia, China, and the Philippines.
In April, the Singapore firm landed its largest-ever contract in the company’s history which also involved record tonnage and number of process modules in a single contract. The deal took the company’s orderbook to a record S$896m ($687m). Furthermore, Dyna-Mac’s net profit nearly quadrupled in the first half of 2024 compared to the same period last year, while its sales jumped by 42.5%.
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Source: The Korea Economic Daily
